Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

U.S. grant of $1.66 billion for new buses aims to curb emissions

Published 08/16/2022, 05:12 AM
Updated 08/16/2022, 04:43 PM
© Reuters. FILE PHOTO: A bus display reads: "ride safe, cover your face" to prevent the spread of the coronavirus disease (COVID-19), at the downtown bus station in Tucson, Arizona, U.S., June 20, 2020. REUTERS/Cheney Orr

By David Shepardson

WASHINGTON (Reuters) - The U.S. Transportation Department said on Tuesday it is awarding $1.66 billion in grants to cities and states to buy 1,800 buses in a shift to cleaner, lower-emission travel.

The grants will fund 1,100 zero-emission buses, which will nearly double the existing 1,300 zero-emission transit buses, the White House said.

The funding for 150 bus fleets from the $1 trillion 2021 infrastructure law will help cities and states retire older polluting buses.

The funding will also buy 700 buses, which include hybrid-electric, natural gas and diesel models. "These grants are going to be used in every corner of this country," White House infrastructure coordinator Mitch Landrieu told reporters.

Buses account for about half of the 10 billion U.S. transit trips Americans took in 2019. But there are still few green buses - just 18% of the 72,000 U.S. transit buses were hybrid electric in 2020, according to the American Public Transportation Association.

Public transit suffered through COVID-19 as tens of millions of Americans worked from home and curbed business and tourism travel, but systems are reporting increasing use as Americans return to offices and travel.

The New York Metropolitan Transportation Authority (MTA), the busiest U.S transit system, will receive $116 million

to buy about 230 electric buses to replace older diesel ones, electrifying nearly 4% percent of its 5,800-bus fleet.

The Los Angeles County Metropolitan Transportation Authority (Metro) will receive $104.1 million to acquire about 160 electric buses to replace older compressed natural gas (CNG) buses, while the Massachusetts Bay Transportation Authority will get $116 million to buy up to 85 EV buses to replace diesel models.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The infrastructure law provides $5.5 billion over five years for bus grants, six times prior funding levels and $2 billion for buying and rehabilitating buses and building bus maintenance facilities.

Memphis will receive $54 million to build an operations/ maintenance facility, while New Jersey Transit will get $44.6 million to renovate its Union City garage near New York and create a public bus terminal.

Latest comments

To curb emissions my ****...forcing it down our throats
Not a bus fan but if we do them they should be ev or hybrid at least
Good news. Both EV and H2 Fuel Cell buses are already being produced in many plants around the world, including CaetanoBus (https://caetanobus.pt/en/)
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.